Rocket Dollar Knowledge Base

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Rocket Dollar Knowledge Base

Self-Directed IRA (Traditional, Roth, or Beneficiary)

Self-Directed IRA (Traditional, Roth, or Beneficiary)

The Self-Directed IRA is one that almost all Americans can qualify for. You can open a Traditional or Roth IRA with checkbook control.

Self-Directed IRA FAQs

What is the structure for a Rocket Dollar Self-Directed IRA with an LLC and how does it work?

Custody or Checkbook control, which is better for me?

I already own an alternative asset custodied in a Self-Directed IRA. Can I transfer this to my checkbook IRA/LLC account within my Rocket Dollar Self-Directed IRA?

Can I roll over my old IRA or other retirement accounts into my new Rocket Dollar Self-Directed IRA account?

Who is a disqualified person to my Rocket Dollar Self-Directed IRA?

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Taxes

How does a Self-Directed Retirement IRA Account affect my taxes?

Contributions, Limits, and Distributions

When are IRA contributions due for my Self-Directed Traditional or Roth IRA?

How do I make new contributions to my IRA LLC?

What are the respective maximum contributions for Self-Directed Traditional IRA and Self-Directed Roth IRA for 2020 and 2021?

What are the exceptions on penalties for early distributions/withdrawals?

Opening a Self-Directed IRA Account

How do I open a Self-Directed Checkbook IRA account? What is the step-by-step process?

How fast can I open and fund a Self-Directed IRA account with Rocket Dollar?

Funding my IRA

Can I rollover my 401(k) or 403(b) plan that I currently work at? What is an in-service rollover?

How can I fund and transfer assets into my Rocket Dollar Self-Directed IRA account?

Can I rollover a 403 (b) into a Self-Directed IRA or Solo 401(k)?

How long do transfers from my current custodian take for my IRA?

Eligibility

Am I eligible to open and contribute to a Rocket Dollar Self-Directed IRA account? What are the eligibility requirements?

Traditional (Pre-Tax)

Can I get a tax deduction from my Traditional IRA contribution?

How are Pre-Tax Traditional Self-Directed IRA distributions taxed?

How do I calculate the required minimum distribution (RMDs) for a Rocket Dollar Self-Directed IRA account?

Roth (post-tax)

How do I execute a Roth conversion or Backdoor Roth at Rocket Dollar?

Am I eligible for a Roth IRA contribution in 2020/2021?

What is the Roth IRA 5-year withdrawal rule?

IRA LLCs

What is a beneficial owner?

Why am I using an LLC within the Self-Directed IRA to hold my assets? Can I use Rocket Dollar's custodian?

If my home state is not Colorado, do I need to register the Colorado LLC as a foreign entity in my home state?

What are the advantages and regulations for a multi-member LLC? Can I invest in the same asset with my spouse and personal IRA?

I have a normal LLC I already use for some everyday business and non-retirement dollar investing activities... can I use that LLC in my Self-Directed IRA?

Should I register my Colorado LLC as a foreign entity?

How should I title investment and subscription documents for the Rocket Dollar IRA LLC? Can I have a custom LLC name for my IRA LLC?

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Self-Directed Inherited/Beneficiary IRA

What is a beneficiary? How do I name a beneficiary to my Self-Directed IRA account?

What are the inherited IRA distribution rules? Can I roll over a beneficiary IRA to a Rocket Dollar account?

Uncommon Questions

Can I roll over education savings from a Coverdell IRA or my 529 account into a Rocket Dollar account?

Is the Self-Directed IRA account with Rocket Dollar a Qualified Retirement Plan?